File No. 341.115C71/1

The Secretary of State to the Ambassador in Great Britain ( Page )

[Telegram]

4232. Colombian Maritime Co. (Ltd.), New York corporation, president of which states no belligerent capital of any description is employed in its business, complains its steamship Balboa placed on black list. British Consul General, New York, explains to company this action taken because vessel carried from Buenaventura to Canal Zone goods consigned to Schutte-Bunemann & Co., New York, which is understood to be on black list. President of company represents British Government have refused coaling privileges to other vessels desired to be chartered by company because of this blacklisting Balboa; that it is feared agents Balboa, as well as shippers who may ever have occasion use other means transportation, will discontinue patronage Balboa, through fear being blacklisted if patronage continued. It appears cargo which resulted in blacklisting was carried on initial trip in which Balboa entered into competition [Page 506] with Pacific Steam Navigation Co., British concern, which had previously enjoyed monopoly carrying business between Buenaventura and Canal Zone, and that consequently any disadvantage caused Balboa will occasion corresponding advantage to British concern. Bearing in mind neutral character commerce between South America and United States, attention British Government should be recalled to following statements in its note October 10,1 which do not seem to be entirely consistent with action in this case: First. “Government United States can feel confident this system of prohibitions will not be carried further than is absolutely necessary.” Second. “To allow it to interfere with what is really genuine neutral trade of country with which we desire closest commercial intercourse, would be contrary to British interests.” Third. “Self-interest alone would render His Majesty’s Government anxious not to place upon statutory list names of any firms which carry on genuine bona fide neutral trade.” Mention may also be made of British Government’s disavowal of intention “merely to foster their own trade at the expense of that of neutral countries.”

Communicate with the Foreign Office in the sense of the foregoing, and say that since it is readily perceivable that the effect of the Trading with the Enemy Act, as apparently applied in this case, is inflicting great and undeserved injury on neutral citizens and commerce, and since this action of the British Government appears to be contrary to the British declarations and assurances regarding the black-list measures, this Government believes that, upon a reconsideration of the case, the Balboa will be removed from the black list.

Lansing